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Focus Malaysia
3 days ago
- Business
- Focus Malaysia
UK corporate crime reforms: Lessons for Malaysia
AS global scrutiny of corporate wrongdoing intensifies, governments are being pressed to close gaps in legal frameworks that allow powerful organisations to escape accountability. The United Kingdom's (UK) proposed Crime and Policing Bill 2025, which builds on the Economic Crime and Corporate Transparency Act 2023 (ECCTA), signals a fundamental shift in how corporate criminal liability is approached. For Malaysia, grappling with recurring corporate scandals and persistent enforcement gaps these developments offer a timely lesson in legal reform. The UK's current reforms break from its traditionally narrow 'identification principle', under which corporate criminal liability hinged on proving that the directing mind and will (typically, board-level executives) possessed the necessary criminal intent. This model had long struggled to hold large, complex corporations accountable, as misconduct often occurred several layers below board level. The result was a form of de facto immunity for major corporations an issue Malaysia knows too well from high-profile cases like 1MDB. The ECCTA, along with the proposed Crime and Policing Bill, challenges and reshapes the existing status quo. The UK is introducing a broader 'senior manager' test that attributes liability to a corporate entity if a senior manager, acting within their actual or apparent authority, commits an offence. Initially limited to economic crimes such as fraud and bribery, the new Bill proposes to expand this principle to all criminal offences, including environmental breaches, health and safety violations, and potentially even regulatory offences under data protection or competition law. Should Malaysia give serious consideration to this matter? The relevance for Malaysia Malaysia has made progress in recent years with frameworks like the corporate liability provision under Section 17A of the Malaysian Anti-Corruption Commission Act 2009, which imposes liability on companies for bribery committed by associated persons. But unlike the UK's evolving regime, Malaysia's framework remains limited in scope. It does not yet offer a comprehensive system that attributes liability to senior individuals beyond bribery, nor does it extend to a broader array of corporate misconduct. In an era where corporate actors are transnational, crimes like money laundering, tax evasion, and environmental damage frequently cut across jurisdictions. Yet Malaysia's legal system lacks the robust extraterritorial reach that both ECCTA and the proposed UK Bill provide. The UK reforms allow for corporate liability even where only part of the conduct occurs in the UK, or where the victim is a UK national. Malaysia must adopt a similarly outward-facing approach, particularly given the global footprint of its GLCs, listed companies, and state-linked institutions. Why reform is crucial now First, Malaysia is at a credibility crossroads. Although enforcement agencies have made strides in tackling corruption and economic crime, public confidence in institutional accountability remains fragile. Legal reform that closes loopholes in corporate criminal liability can help restore faith in the system and signal a genuine commitment to good governance. Second, the global enforcement landscape is shifting. The creation of a new taskforce involving the UK, France, and Switzerland aimed at prosecuting international financial crime shows that enforcement is becoming more collaborative and less tolerant of inaction. The US, traditionally a leader in anti-corruption enforcement via the Foreign Corrupt Practices Act, has slowed enforcement. This vacuum is being filled by European actors. Malaysia, a regional economic hub, risks reputational harm and legal isolation if it does not modernise its approach. Third, as ESG (environmental, social and governance) accountability becomes mainstream, companies are being judged not just by profitability but by compliance and integrity. A modern liability regime that deters wrongdoing by making corporations answerable for the actions of their senior personnel aligns with this global shift. This is especially pertinent given Malaysia's reliance on natural resources, extractive industries, and a growing digital economy sector where regulatory breaches can have far-reaching effects. Key takeaways for Malaysian reform Malaysia should consider key corporate liability reforms, drawing from the UK's legal framework. First, the basis of liability should be broadened beyond bribery to encompass all serious economic crimes, environmental offences, and regulatory breaches, ensuring comprehensive accountability. A 'Senior Manager' test should also be introduced, holding companies liable for misconduct by individuals with significant decision-making authority, even if they are not board members. Additionally, the scope of authority must be clarified to include 'apparent authority,' preventing firms from denying liability for criminal acts carried out in role-relevant contexts. Malaysia should also enhance the extraterritorial application of its laws, enabling prosecution of offences that affect Malaysian interests, even when elements occur abroad. Finally, to foster a culture of prevention, Malaysia could adopt a mechanism similar to the UK's Deferred Prosecution Agreement regime, which encourages companies to implement robust compliance programs and self-report misconduct in exchange for more flexible enforcement. These reforms would significantly strengthen corporate accountability and regulatory integrity. ‒ June 26, 2025 R. Paneir Selvam is the principal consultant of Arunachala Research & Consultancy Sdn Bhd, a think tank specialising in strategic national and geopolitical matters. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image: Shutterstock
Malay Mail
21-06-2025
- Politics
- Malay Mail
Rosmah calls Najib's DNAA in SRC case a ‘blessing from Allah'
KUALA LUMPUR, June 21 — Datin Seri Rosmah Mansor has expressed gratitude to supporters of her husband, Datuk Seri Najib Razak, following the High Court's decision to grant the ex-prime minister a discharge not amounting to an acquittal (DNAA) yesterday. In a message posted on Facebook, she thanked those who shared open letters, videos, and social media posts about Najib's leadership. Rosmah said it was 'comforting' to see that her husband's legacy continues to be appreciated by many Malaysians. 'Yesterday's DNAA verdict for my husband was truly a blessing from Allah, made possible through your continuous prayers and well-wishes. 'We pray that this marks the beginning of better days ahead,' she said. Special mention was given to those who were physically present in court to support Najib and to those who expressed their joy online. Rosmah also disclosed that she was absent from court yesterday because she had spent the previous night caring for her granddaughter, who had a high fever. Rosmah ended her note with warm wishes for the weekend and a prayer for continued blessings on Najib's supporters. Yesterday, the High Court granted Najib a conditional discharge in his final SRC International case involving RM27 million, due to prolonged trial delays. Najib still has the main 1MDB trial pending.
Arab Times
21-06-2025
- Business
- Arab Times
Malaysian court drops money laundering charges against jailed Najib
KUALA LUMPUR, Malaysia, June 21, (AP): A Malaysian court dropped three money laundering charges against jailed former Prime Minister Najib Razak on Friday, in a case linked to the multibillion-dollar looting of a state fund. Najib was previously convicted in a graft case tied to the 1Malaysia Development Berhad state fund, or 1MBD, and began serving time in 2022, after losing his final appeal. He also faces other graft trials. The High Court's decision to drop the charges alleging Najib received 27 million ringgit ($6.3 million) in illegal proceeds to his bank accounts came after procedural delays by the prosecution, which saw the case dragging on for six years, Najib's lawyer Muhammad Shafee Abdullah said. Prosecutors could not give the court a timeline for when they will be ready for the trial, he added. Prosecutors reserve the right to revive charges against Najib and a discharge does not mean an acquittal, Shafee said. But, Najib was happy and can now focus on the main 1MDB trial, he added. Najib set up 1MDB shortly after taking power in 2009. Investigators allege that more than $4.5 billion was stolen from the fund and laundered by his associates to finance Hollywood films and extravagant purchases. The scandal upended Najib's government and he was defeated in the 2018 election. Last November, the High Court also discharged Najib and the former treasury chief in another 1MDB-linked corruption case after repeated delays by the prosecution. The pair can still be charged for the same offence in the future. In 2023, Najib was acquitted on separate charges of tampering with a government audit into 1MDB. Najib was sentenced to 12 years in jail in his first graft trial but the sentence was halved by the Pardon Boards in 2024. Najib alleged the board had issued a home arrest order for him to complete his sentence at home, but the case is still being heard in court. Najib awaits his verdict in another key case that ties him directly to the 1MDB scandal, which has prompted investigations in the US and several other countries. The defense in May closed their case on four charges of abuse of power to obtain over $700 million from 1MDB that went into Najib's bank accounts, and 21 counts of money laundering involving the same amount. Closing arguments are scheduled in October, after which the court will set a date for verdict.
Malaysiakini
21-06-2025
- Politics
- Malaysiakini
We had 'no other choice', AGC says over Najib's DNAA
The Attorney-General's Chambers (AGC) said it "did not have any other choice" but to await the conclusion of Najib Abdul Razak's 1MDB and the first SRC International trials, before it could use the overlapping documents required for the second SRC International case. The agency emphasised the necessity of securing the required documents as evidence, explaining that...
Malay Mail
21-06-2025
- Business
- Malay Mail
AGC denies ‘flawed prosecution' claims after Najib's DNAA in second SRC case, delays due to overlapping cases
KUALA LUMPUR, June 21 — The Attorney General's Chambers (AGC) has dismissed as baseless allegations that it carried out a 'flawed prosecution' in the second SRC International Sdn Bhd case involving Datuk Seri Najib Tun Razak. In a statement, the AGC reiterated its firm commitment to upholding the rule of law and stated that it would continue to fulfill its responsibilities under the Federal Constitution with integrity, fairness and respect for the judicial process. However, the AGC acknowledged the decision by High Court Judge K Muniandy to grant Najib a discharge not amounting to an acquittal (DNAA) on three charges of money laundering involving RM27 million in funds from the company. 'The case was registered in the High Court on Feb 7, 2019, and scheduled for trial on five occasions: June 2020, July to August 2021, March to April 2022, September 2024 and April to May 2025. 'However, all trial dates were postponed due to the Movement Control Order caused by the Covid-19 pandemic, requests by the defence, or applications by the prosecution itself,' the statement read. According to the statement, the prosecution's requests for postponement were due to the ongoing trial of the first SRC case, which proceeded at the High Court, Court of Appeal and Federal Court until its completion on March 31, 2023. At the same time, the trial proceedings for the 1Malaysia Development Berhad (1MDB) case had also begun while the first SRC case was still ongoing. 'Both cases involved overlapping material documents required for the second SRC trial. 'As these documents were critical to the second SRC case, the prosecution had no choice but to wait until they were available, which was until the 1MDB trial proceedings were completed. 'It must be emphasised that the material documents are available but are currently being used as evidence in the ongoing 1MDB trial,' the AGC said. The AGC further stated that the prosecution had requested additional time to gather all relevant material documents to be presented as evidence in the second SRC trial. 'This delay was not intentional but was to ensure the integrity of the documents as evidence in the trial is preserved,' the statement read. Earlier today, Judge Muniandy, in granting Najib a DNAA on the three charges, stated that the case had been pending for six years since 2019, without any witness testimony being presented, having faced multiple postponements, which indicated that the prosecution was not ready to proceed with the trial. On Feb 3, 2019, Najib claimed trial to three charges of money laundering by accepting illegal proceeds amounting to RM27 million through his three AmPrivate Banking accounts at AmIslamic Bank Berhad, AmBank Group Building, Jalan Raja Chulan on July 8, 2014. The former Pekan MP was charged under Section 4 (1) (a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001, which is punishable by a maximum fine of RM5 million or imprisonment of up to five years, or both upon conviction. Najib is currently serving a jail term in Kajang Prison for the misappropriation of RM42 million in the SRC International funds case. On Sept 2, 2022, he filed a petition for a royal pardon, which led to the Pardons Board halving his jail term from 12 to six years and reducing the fine from RM210 million to RM50 million on Jan 29, 2024. — Bernama
